Crypto Daily: Bitcoin Couldn’t Hold Above $41,000

Aug 06, 2021
11:08
2 min reading

Choise.com team

Over the past 24 hours, the price of Bitcoin has grown by 2% and again exceeded the important psychological level of $40,000. At the same time, the trading volume increased significantly to $36 billion per last day.

The rest of the market also grew slightly. All this happened against the backdrop of the successful London hardfork on the Ethereum network. Thanks to this update gas commissions will decrease by 20% – 30%.

However, a few hours after this event, the market began to decline. Let’s take a look at the chart of the first cryptocurrency to see if we should expect new growth:

Bitcoin hit the $41,000 mark once again but failed to gain a foothold above it. This level is key for the continuation of the upward trend. In addition, the price tested the lower border of the ascending channel and rolled back downward. This indicates the current strength of sellers.

The indicators also do not provide clear answers about the future direction of the Bitcoin price. MACD shows a weak upward trend, which can interrupt at any moment. Stochastic and RSI were heavily overbought on the daily timeframe and showed a downtrend there.

Most likely, the price can go down to the Bollinger Middle Line at $39,000. There is important support near this level at Fibonacci level 0.236. This indicates that the fall can stop in this zone and we can see a price reversal.

At the moment, it is very difficult to predict the further direction of the chart movement. Now it is necessary to closely monitor the reaction of buyers and sellers around the $40,000 level. At the same time, taking into account the weekend, the probability of a decline is always slightly higher due to the lack of liquidity in the market.

Overall, we expect this chart to close with a red candle on the weekly timeframe. This will happen below $39,845. This is explained by the fact that a strong growth at the early stage of an uptrend always rests against significant resistance and for some time gains strength for a new upward spurt.

If you see a good investment opportunity in buying Bitcoin now, use Crypterium and make the first crypto purchase without fees.